MSME Certification makes a systematic flow of data for government to make the correct calculation of economy etc. Even government also promote MSME Certification. That is why there are a lot of Tax benefits, Finance benefits provided by the government to the MSME Certificate holders.
The following is an inclusive list of benefits of MSME Certification.
Government Special Schemes
Government provides a lot of assistance to those enterprises which are registered under MSMED Act 2006. Schemes like Credit Guarantee Scheme (CGTMSE), Mudra Loan Scheme etc. MSME Certificate holder can raise loan up to 5 crores with the government guarantee.
Banks give special treatment to MSME Certificate holders. Banks provide easy loans to these enterprises at a lower rate of interest & also give preferential treatment if there is any delay in making payments.
Reservation in Delayed Payment Act
Government also provides reservation in the Delayed Payment Act. Which assist MSME certificate holders to avoid penalties. This Actsafeguards the MSME holders from high interest overdue and Penalties.